The Cambria freeman. [volume] (Ebensburg, Pa.) 1867-1938, 1887-12-16
PRESIDENTS MESSAGE.


largely exceeds the sum necessary to
meet the expenses of the Government.
When we consider that the theory of
our institutions guarantees 20 every
citizen the full enjoyment of all the
fruits of his industry and enterprise,
with only sucn deduction as may be his
share toward the careful and economi-
cal maintenance OF the Government
which protects him, il is plain that the
eXaction of more than this is inde.ensi-
BILE extortion, and culpable betrayal
OF American fairness and justice.
This wrong inflicted upon those who
bear the burden of DatIonal taxation,
like other wrongs, multiplies brood OF
evil consequences. The public treasury,
which should only exist as conduit
conveying the peoples tribute to its
legitimate objects of expenditure, be-
comes a hoauding-place for money need
lessly withdrawn from trade and the
peoples use, thus crippling our national
energies, suspenCing our coun.ry's de-
velopmenJ, preventing Investment to
productive enterprise, threatening finan-
cial distuI bance. and inviting schemes
OF public plunder.
This condition of our treasury is not
altogether new, and il has more than
once o. late been submitted TO the pso-
ple's representatives in the Congress,
who alone can apply a remedy. And
yet the situation still continues, with
aggravated incidents, more than ever
presaging financial conyu!sion and wide
spread disaster.
It will not do 10 neglect this situation
because Its dangers are not now palpa-
bly, imminent and apparent. They ex-
ist none the less certainly, and await
.feaA Tnr
when suddenly they will be precipita.ed
upon Cs.
On the 30 Gay of June, 1855, the ex-
cess OF reveI ues over public expenditures
after complying with the annual require
urent Of the sinking fund act, was Sl1.-
$50, 135 81 during the year ended June
80. 1886 such excess amounted TO So
4O5, 80 20. and during the year ended
June 30. 1887, it reached the sum of
500. .J67, ,S49. "a.
The annual contributions 20 the
sinking-fund during the three years
above specified. amounting in the sg-
gregate 10 S13S. .OjS, 32O. "a, and deduct
ed from that surplus as stated, were
made by calling in for that purpose out
standing three per cent bonds OF the
Government. During the six months
! prior to June 80. 1887, the surplus reye-
Eue had grown so large by repeated ac-
cumulations, and il was feared the
withdrawal of this great sum of money
needed by the psOp;e, would so ar
feet the business OF the country that the
sum of S79, ,S64 100 OF such surplus was
applied to the payment OF the principle
AMI interest OF the uhres per cent bonds
still outstanding, and which were then
payable at the option Of the Govern
meut. The precarious condition of
financial affairs among the people still
needing relief, Immediately after the
Both day of June, 1887, the remainder
of the three per cent bonds then out
standing. amounting with principle and
interest TO the sum of SIS STT. 800 were
called in aud applied to the sinking
fund contribution for the current fiscal
year. Notwithstanding these operations
of the Treasury Department repreSen-
tations OF distress in business circles
not only continued bu. increased, and
absolute perit seemed at hand. In
these circumstances the contribution 70
the sinking-fuud for the current fiscal
year was at once completed by the ex-
penditure of S2T. 6S4, ,2S3 % in The pur-
chase of Government bonds not yet due
bearing four and four and half Ier
cent interest, the premium paid thereon
averaging about twenty-four per cent
for the former and eight per cent for
! the latter. In addition to this the in.
terest accruirg durius the current yea1
upon the outstanding bonded indebted
ness of the Government was TO some
extent anticipated. and banks selecte1.
as repositories of public money were
permitted TO somewhat increase their
deposits.
ENORMOUS SURPLUS PREDICTED.
While expedients thus employed, TO
release to the people the money lying
idle In the Treasury. served TO avert
immediate danger, our surplus revenues
have continued 20 accumulate, the ex-
cess for the present year amounting on
tie 1st day or December to S55 25S, ,7Ol. =
10 and estimated to reach the sum of
Sll3, 900. 600 on the 30th of June next.
at which date it is expected that this
sum added to prior Accommodations,
will swell the surplus in the Treasury
to $40, 900. .0C0.
There seems to be no assurances that,
with such withdrawal from use of
the peoples circulating medium, our
busines community may not in the near
future be subjected TO the same distress
which was quite lately produced from
the same cause. And while the fuuc-
IioLs OF our Natiosal Treasury should
be few and simple, and while its best
condition would be reached. 1 believe,
I by its entire diScOnnectIon with private
business Interests, vet when, by per-
version OF its purposes, it idly hOlds
money uselesSly subtracted from the
channels Of trade. there seems 20 be
reason for the claim that some legiti-
mate means should be devised by the
Government to restore in an emergency
without waste OF eXtravagance, such
money TO its place among the people.
II such an emergency arises there
now exists no clear and undoubte ed
executive power or relief. Heretofore
/ the redemption of thTse per cent bonds
which were payable AT the option of the
/ Government, has afforded a means for
/ :he disbursement of the excess of Cur
I revenues hut these bonds nave all been
/ retired. and there are no bonds Outstand-
ing the payment of which we have the
| right TO insist upon. The contribution
| To the sinking fund which furnishes the
/ occasion for expenditure in the pur-
/ chase OF bonds has been already made
/ fOC the current year. so that there is no
! Quiet in that direction.
/ SHALL THE PURCHASE OF bonds CON
TINUE?
/ In the present state OF legislation the
! only preteuse OF any existing executive
! power 20 restore, at this time, any part
( of our surplus revenues to the people by
I its expenditure. consists in the suppose
/ tion that the Secretary OF the Treasury
may enter the market and purchase the
I bonds Of the Government not vet due.
! a a -ate nf premium 20 be agreed upon.
/ The only provision of law from which